Frontier REIT to Acquire Three Retail Assets for JPY 21.4 Billion, Including Additional Stake in LaLaport Izumi

Frontier Real Estate Investment Corporation announced on December 18, 2025, that it will acquire three retail properties for a total planned acquisition price of JPY 21.439 billion. The REIT will increase its 71.5% quasi-co-ownership interest in Mitsui Shopping Park LaLaport Izumi, while also adding two retail buildings located along Kokusai-dori in Naha, Okinawa.

LaLaport Izumi is a regional shopping center located in Triveil Izumi, Izumi City, Osaka Prefecture, and opened in October 2014. The property offers roughly 200 stores and approximately 3,400 parking spaces, situated about 500 meters from the Hanwa Expressway “Kishiwada-Izumi” IC. Its 30-minute drive-time trade area includes a population of around 800,000. In addition to the adjacent Costco, a Lopia supermarket opened in April 2025, further enhancing visitor traffic. The REIT already holds a quasi-co-owned interest in the asset with Mitsui Fudosan and other partners, and this transaction will increase its stake.

The two Naha properties are both situated along Kokusai-dori. M-Building Naha Kokusai-dori I is a seven-story building completed in June 2021 and currently occupied by the GiGO amusement center. M-Building Naha Kokusai-dori II is a five-story building completed in July 2021, where the inbound-focused Don Quijote Kokusai-dori Kumoji Store opened in June 2025. Both buildings are relatively new and offer scarcity value within the market. Okinawa welcomed 9.66 million visitors in 2024, reaching 95% of 2019 levels, and commercial land prices in central Naha increased 6.77% year-over-year in the 2025 official land price announcement. Through these acquisitions, the REIT aims to expand its asset size and enhance geographic diversification.

Key Facts

• Mitsui Shopping Park LaLaport Izumi (71.5% quasi-co-ownership interest) – Additional Acquisition

  • Buyer: Frontier Real Estate Investment Corporation

  • Seller: SMFL Mirai Partners Co., Ltd.

  • Planned Acquisition Price: JPY 18,970 million

  • Appraisal Value: JPY 20,449 million

  • Cap Rate (Appraisal NOI Basis): 4.8%

  • Location: 4-4-7 Ayumino, Izumi City, Osaka Prefecture

  • Nearest IC: Hanwa Expressway “Kishiwada-Izumi” IC (approx. 500 m)

  • Completion: September 2014

  • Number of Floors: 5F

  • Gross Floor Area: approx. 45,963 tsubo (approx. 152,000 sq. ft.) entire property

  • Occupancy: 100%

• M-Building Naha Kokusai-dori I

  • Buyer: Frontier Real Estate Investment Corporation

  • Seller: Not disclosed

  • Planned Acquisition Price: JPY 1,598 million

  • Appraisal Value: JPY 1,650 million

  • Cap Rate (Appraisal NOI Basis): 3.9%

  • Location: 3-3-20 Kumoji, Naha City, Okinawa Prefecture

  • Nearest Station: Okinawa Urban Monorail “Kenchō-mae” Station (6-minute walk)

  • Completion: June 2021

  • Number of Floors: 7F

  • Gross Floor Area: approx. 302 tsubo (approx. 10,000 sq. ft.)

  • Occupancy: 100%

• M-Building Naha Kokusai-dori II

  • Buyer: Frontier Real Estate Investment Corporation

  • Seller: Not disclosed

  • Planned Acquisition Price: JPY 871 million

  • Appraisal Value: JPY 900 million

  • Cap Rate (Appraisal NOI Basis): 3.9%

  • Location: 3-29-66 Kumoji, Naha City, Okinawa Prefecture

  • Nearest Station: Okinawa Urban Monorail “Kenchō-mae” Station (6-minute walk)

  • Completion: July 2021

  • Number of Floors: 5F

  • Gross Floor Area: approx. 159 tsubo (approx. 5,300 sq. ft.)

  • Occupancy: 100%